SB-0288,As Passed Senate,May 6, 2003                                        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                  SUBSTITUTE FOR                                

                                                                                

                               SENATE BILL NO. 288                              

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to make appropriations for the department of agriculture                   

                                                                                

    for the fiscal year ending September 30, 2004; to provide for the           

                                                                                

    expenditure of the appropriations; to create funds; to provide for the      

                                                                                

    imposition of fees; to require reports, audits, and plans; to               

                                                                                

    authorize certain transfers by certain state agencies; and to provide       

                                                                                

    for the disposition of fees and other income received by certain state      

                                                                                

    agencies.                                                                   

                                                                                

                  THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                    

                                                                                

1                                   PART 1                                      

                                                                                

2                          LINE-ITEM APPROPRIATIONS                             

                                                                                

3       Sec. 101.  Subject to the conditions set forth in this act, the             

                                                                                

4   amounts listed in this part are appropriated for the department of          

                                                                                

5   agriculture for the fiscal year ending September 30, 2004, from the         

                                                                                

6   funds indicated in this part.  The following is a summary of the            

                                                                                

7   appropriations in this part:                                                

                                                                                


                                                                                

1   DEPARTMENT OF AGRICULTURE                                                   

                                                                                

2   APPROPRIATION SUMMARY:                                                      

                                                                                

3       Full-time equated unclassified positions........6.0                     

                                                                                

4       Full-time equated classified positions........557.0                     

                                                                                

5     GROSS APPROPRIATION................................. $      89,182,500    

                                                                                

6       Interdepartmental grant revenues:                                       

                                                                                

7     IDG from MDCH, local public health operations.......         8,878,700    

                                                                                

8     IDG from MDCIS (LCC), liquor quality testing fees...           164,000    

                                                                                

9     IDG from MDCIS (LCC), nonretail liquor license fees.           515,900    

                                                                                

10    IDG from MDEQ, biosolids............................            80,000    

                                                                                

11    IDG from MDEQ, right to farm........................           105,000    

                                                                                

12    IDG from MDEQ, type II well survey..................            15,000    

                                                                                

13    IDG from MDNR, district forestry and wildlife                             

                                                                                

14      program...........................................         1,000,000    

                                                                                

15    Total interdepartmental grants and intradepartmental                      

                                                                                

16      transfers.........................................        10,758,600    

                                                                                

17    ADJUSTED GROSS APPROPRIATION........................ $      78,423,900    

                                                                                

18      Federal revenues:                                                       

                                                                                

19    DAG, multiple grants................................         4,251,000    

                                                                                

20    EPA, multiple grants................................         2,280,000    

                                                                                

21    HHS-FDA.............................................           270,700    

                                                                                

22    Total federal revenues..............................         6,801,700    

                                                                                

23      Special revenue funds:                                                  

                                                                                

24    Total local revenues................................                 0    

                                                                                

25    Private - oil company overcharge settlement.........           997,600    

                                                                                

26    Private - slow-the-spread foundation................           130,000    

                                                                                

27    Total private revenues..............................         1,127,600    


                                                                                

1     Agriculture equine industry development fund........        10,442,000    

                                                                                

2     Agriculture pollution prevention fund...............               100    

                                                                                

3     Agricultural preservation fund......................           727,300    

                                                                                

4     Civil penalties.....................................            40,300    

                                                                                

5     Commodity inspection fees...........................           991,500    

                                                                                

6     Gasoline inspection and testing fund................         1,565,800    

                                                                                

7     Groundwater and freshwater protection fund..........         4,756,500    

                                                                                

8     Industry support funds..............................           260,000    

                                                                                

9     Licensing and inspection fees.......................         5,925,500    

                                                                                

10    Michigan state fair revenue.........................         5,372,400    

                                                                                

11    Pseudorabies and swine brucellosis fund.............            20,000    

                                                                                

12    State services fee fund.............................         4,864,000    

                                                                                

13    Testing fees........................................           357,500    

                                                                                

14    Upper Peninsula state fair revenue..................         1,224,300    

                                                                                

15    Weights and measures regulation fees................           518,400    

                                                                                

16    Total other state restricted revenues...............        37,065,600    

                                                                                

17    State general fund/general purpose.................. $      33,429,000    

                                                                                

18      Sec. 102.  EXECUTIVE                                                        

                                                                                

19      Full-time equated unclassified positions........6.0                     

                                                                                

20      Full-time equated classified positions.........48.5                     

                                                                                

21    Commission and boards............................... $          63,300    

                                                                                

22    Unclassified positions--6.0 FTE positions...........           428,500    

                                                                                

23    Executive direction--7.0 FTE positions..............           752,000    

                                                                                

24    Management services--37.5 FTE positions.............         2,833,100    

                                                                                

25    Statistical reporting service--4.0 FTE positions....           326,500    

                                                                                

26    GROSS APPROPRIATION................................. $       4,403,400    

                                                                                

27        Appropriated from:                                                    


                                                                                

1       Interdepartmental grant revenues:                                       

                                                                                

2     IDG from MDCIS (LCC), nonretail liquor license fees.             8,800    

                                                                                

3       Special revenue funds:                                                  

                                                                                

4     Gasoline inspection and testing fund................            47,800    

                                                                                

5     Licensing and inspection fees.......................            10,000    

                                                                                

6     Michigan state fair revenue.........................            80,500    

                                                                                

7     State services fee fund.............................           160,500    

                                                                                

8     Upper Peninsula state fair revenue..................             9,000    

                                                                                

9     State general fund/general purpose.................. $       4,086,800    

                                                                                

10      Sec. 103.  DEPARTMENTWIDE                                                   

                                                                                

11    Rent and building occupancy charges................. $       1,700,700    

                                                                                

12    Employee turnover savings...........................           (75,000)   

                                                                                

13    GROSS APPROPRIATION................................. $       1,625,700    

                                                                                

14        Appropriated from:                                                    

                                                                                

15      Interdepartmental grant revenues:                                       

                                                                                

16    IDG from MDCIS (LCC), nonretail liquor license fees.             6,600    

                                                                                

17      Federal revenues:                                                       

                                                                                

18    DAG, multiple grants................................           115,000    

                                                                                

19    EPA, multiple grants................................            70,000    

                                                                                

20    HHS-FDA.............................................            15,000    

                                                                                

21      Special revenue funds:                                                  

                                                                                

22    Agricultural preservation fund......................            27,300    

                                                                                

23    Groundwater and freshwater protection fund..........            10,900    

                                                                                

24    Licensing and inspection fees.......................            55,200    

                                                                                

25    State services fee fund.............................           304,600    

                                                                                

26    State general fund/general purpose.................. $       1,021,100    

                                                                                

27      Sec. 104.  FOOD AND DAIRY                                                   


                                                                                

1       Full-time equated classified positions........108.0                     

                                                                                

2     Food safety and quality assurance--108.0 FTE                              

                                                                                

3       positions......................................... $       9,815,700    

                                                                                

4     Local public health operations......................         8,878,700    

                                                                                

5     GROSS APPROPRIATION................................. $      18,694,400    

                                                                                

6         Appropriated from:                                                    

                                                                                

7       Interdepartmental grant revenues:                                       

                                                                                

8     IDG from MDCH, local public health operations.......         8,878,700    

                                                                                

9       Federal revenues:                                                       

                                                                                

10    DAG, multiple grants................................            22,700    

                                                                                

11    HHS-FDA.............................................           186,700    

                                                                                

12      Special revenue funds:                                                  

                                                                                

13    Civil penalties.....................................            40,300    

                                                                                

14    Licensing and inspection fees.......................         2,840,200    

                                                                                

15    State general fund/general purpose.................. $       6,725,800    

                                                                                

16      Sec. 105.  ANIMAL INDUSTRY                                                  

                                                                                

17      Full-time equated classified positions.........50.0                     

                                                                                

18    Animal health and welfare--23.5 FTE positions....... $       2,054,100    

                                                                                

19    Bovine tuberculosis program--26.5 FTE positions.....         4,192,500    

                                                                                

20    GROSS APPROPRIATION................................. $       6,246,600    

                                                                                

21        Appropriated from:                                                    

                                                                                

22      Federal revenues:                                                       

                                                                                

23    DAG, multiple grants................................           150,000    

                                                                                

24    HHS-FDA.............................................             9,000    

                                                                                

25      Special revenue funds:                                                  

                                                                                

26    Agriculture equine industry development fund........            50,000    

                                                                                

27    Licensing and inspection fees.......................           178,200    


                                                                                

1     Pseudorabies and swine brucellosis fund.............            20,000    

                                                                                

2     State services fee fund.............................           123,300    

                                                                                

3     State general fund/general purpose.................. $       5,716,100    

                                                                                

4       Sec. 106.  PESTICIDE AND PLANT PEST MANAGEMENT                              

                                                                                

5       Full-time equated classified positions........121.8                     

                                                                                

6     Pesticide and plant pest management--121.8 FTE                            

                                                                                

7       positions......................................... $      12,037,800    

                                                                                

8     Michigan State University...........................           210,000    

                                                                                

9     GROSS APPROPRIATION................................. $      12,247,800    

                                                                                

10        Appropriated from:                                                    

                                                                                

11      Federal revenues:                                                       

                                                                                

12    DAG, multiple grants................................         2,014,400    

                                                                                

13    EPA, multiple grants................................         1,510,000    

                                                                                

14    HHS-FDA.............................................            60,000    

                                                                                

15      Special revenue funds:                                                  

                                                                                

16    Private - slow-the-spread foundation................           130,000    

                                                                                

17    Commodity inspection fees...........................           991,500    

                                                                                

18    Licensing and inspection fees.......................         2,779,800    

                                                                                

19    State general fund/general purpose.................. $       4,762,100    

                                                                                

20      Sec. 107.  ENVIRONMENTAL STEWARDSHIP                                        

                                                                                

21      Full-time equated classified positions.........47.0                     

                                                                                

22    Environmental stewardship--32.7 FTE positions....... $       2,640,200    

                                                                                

23    Groundwater and freshwater protection program--8.3                        

                                                                                

24      FTE positions.....................................         4,924,000    

                                                                                

25    Farmland and open space preservation--6.0 FTE                             

                                                                                

26      positions.........................................           699,800    

                                                                                

27    Cooperative resources management initiative program.         1,000,000    


                                                                                

1     Agriculture pollution prevention program............               100    

                                                                                

2     Energy conservation program.........................           138,000    

                                                                                

3     Local conservation districts........................         1,661,200    

                                                                                

4     Migrant labor housing...............................           255,000    

                                                                                

5     GROSS APPROPRIATION................................. $      11,318,300    

                                                                                

6         Appropriated from:                                                    

                                                                                

7       Interdepartmental grant revenues:                                       

                                                                                

8     IDG from MDEQ, biosolids............................            80,000    

                                                                                

9     IDG from MDEQ, right to farm........................           105,000    

                                                                                

10    IDG from MDEQ, type II well survey..................            15,000    

                                                                                

11    IDG from MDNR, district forestry and wildlife                             

                                                                                

12      program...........................................         1,000,000    

                                                                                

13      Federal revenues:                                                       

                                                                                

14    EPA, multiple grants................................           400,000    

                                                                                

15      Special revenue funds:                                                  

                                                                                

16    Private - oil company overcharge settlement.........           193,900    

                                                                                

17    Agricultural preservation fund......................           699,800    

                                                                                

18    Agriculture pollution prevention fund...............               100    

                                                                                

19    Groundwater and freshwater protection fund..........         4,745,500    

                                                                                

20    State general fund/general purpose.................. $       4,079,000    

                                                                                

21      Sec. 108.  LABORATORY PROGRAM                                               

                                                                                

22      Full-time equated classified positions........115.0                     

                                                                                

23    Laboratory analysis program--61.5 FTE positions..... $       5,012,100    

                                                                                

24    USDA monitoring--18.0 FTE positions.................         1,828,500    

                                                                                

25    Consumer protection program--35.5 FTE positions.....         3,046,500    

                                                                                

26    GROSS APPROPRIATION................................. $       9,887,100    

                                                                                

27        Appropriated from:                                                    


                                                                                

1       Interdepartmental grant revenues:                                       

                                                                                

2     IDG from MDCIS (LCC), liquor quality testing fees...           161,500    

                                                                                

3       Federal revenues:                                                       

                                                                                

4     DAG, multiple grants................................         1,848,900    

                                                                                

5     EPA, multiple grants................................           300,000    

                                                                                

6       Special revenue funds:                                                  

                                                                                

7     Private - oil company overcharge settlement.........           803,700    

                                                                                

8     Agriculture equine industry development fund........           443,900    

                                                                                

9     Gasoline inspection and testing fund................         1,491,800    

                                                                                

10    Testing fees........................................           357,500    

                                                                                

11    Weights and measures regulation fees................           518,400    

                                                                                

12    State general fund/general purpose.................. $       3,961,400    

                                                                                

13      Sec. 109.  MARKET DEVELOPMENT                                               

                                                                                

14      Full-time equated classified positions.........14.0                     

                                                                                

15    Marketing and emergency management--9.0 FTE                               

                                                                                

16      positions......................................... $       1,366,800    

                                                                                

17    Agriculture development--5.0 FTE positions..........           624,900    

                                                                                

18    Export market development program...................           100,000    

                                                                                

19    Food bank...........................................           630,500    

                                                                                

20    Future farmers of America...........................            60,000    

                                                                                

21    GROSS APPROPRIATION................................. $       2,782,200    

                                                                                

22        Appropriated from:                                                    

                                                                                

23      Interdepartmental grant revenues:                                       

                                                                                

24    IDG from MDCIS (LCC), nonretail liquor license fees.           500,000    

                                                                                

25      Federal revenues:                                                       

                                                                                

26    DAG, multiple grants................................           100,000    

                                                                                

27      Special revenue funds:                                                  


                                                                                

1     Industry support funds..............................           260,000    

                                                                                

2     Licensing and inspection fees.......................            62,100    

                                                                                

3     State general fund/general purpose.................. $       1,860,100    

                                                                                

4       Sec. 110.  FAIRS AND EXPOSITIONS                                            

                                                                                

5       Full-time equated classified positions.........21.0                     

                                                                                

6     Michigan state fair operations--9.0 FTE positions... $       5,110,200    

                                                                                

7     Upper Peninsula state fair--7.0 FTE positions.......         1,214,400    

                                                                                

8     Fairs and racing--5.0 FTE positions.................           612,500    

                                                                                

9     Building and track improvement - county and state                         

                                                                                

10      fairs.............................................           839,900    

                                                                                

11    Premiums - county and state fairs...................         1,614,000    

                                                                                

12    Purses and supplements - fairs/licensed tracks......         2,137,900    

                                                                                

13    Standardbred Fedele Fauri futurity..................            70,800    

                                                                                

14    Standardbred Michigan futurity......................            70,800    

                                                                                

15    Quarterhorse programs...............................            34,800    

                                                                                

16    Licensed tracks-light horse racing..................            67,300    

                                                                                

17    Standardbred breeders' awards.......................         1,082,300    

                                                                                

18    Standardbred purses and supplements-licensed tracks.           242,400    

                                                                                

19    Standardbred sire stakes............................           906,800    

                                                                                

20    Thoroughbred sire stakes............................           906,800    

                                                                                

21    Standardbred training and stabling..................            38,300    

                                                                                

22    Thoroughbred program................................         1,586,900    

                                                                                

23    Thoroughbred owners' awards.........................           136,500    

                                                                                

24    Distribution of outstanding winning tickets.........           500,000    

                                                                                

25    GROSS APPROPRIATION................................. $      17,172,600    

                                                                                

26        Appropriated from:                                                    

                                                                                

27      Special revenue funds:                                                  


                                                                                

1     Agriculture equine industry development fund........         7,781,600    

                                                                                

2     Michigan state fair revenue.........................         5,203,100    

                                                                                

3     State services fee fund.............................         2,973,500    

                                                                                

4     Upper Peninsula state fair revenue..................         1,214,400    

                                                                                

5     State general fund/general purpose.................. $               0    

                                                                                

6       Sec. 111.  OFFICE OF RACING COMMISSIONER                                    

                                                                                

7       Full-time equated classified positions.........31.7                     

                                                                                

8     Office of racing commissioner--31.7 FTE positions... $       3,342,500    

                                                                                

9     GROSS APPROPRIATION................................. $       3,342,500    

                                                                                

10        Appropriated from:                                                    

                                                                                

11      Special revenue funds:                                                  

                                                                                

12    Agriculture equine industry development fund........         2,042,500    

                                                                                

13    State services fee fund.............................         1,300,000    

                                                                                

14    State general fund/general purpose.................. $               0    

                                                                                

15      Sec. 112.  INFORMATION TECHNOLOGY                                           

                                                                                

16    Information technology services and projects........ $       1,461,900    

                                                                                

17    GROSS APPROPRIATION................................. $       1,461,900    

                                                                                

18        Appropriated from:                                                    

                                                                                

19      Interdepartmental grant revenues:                                       

                                                                                

20    IDG from MDCIS (LCC), liquor quality testing fees...             2,500    

                                                                                

21    IDG from MDCIS (LCC), nonretail liquor license fees.               500    

                                                                                

22      Federal revenues:                                                       

                                                                                

23      Special revenue funds:                                                  

                                                                                

24    Agricultural preservation fund......................               200    

                                                                                

25    Agriculture equine industry development fund........           124,000    

                                                                                

26    Gasoline inspection and testing fund................            26,200    

                                                                                

27    Groundwater and freshwater protection fund..........               100    


                                                                                

1     Michigan state fair revenue.........................            88,800    

                                                                                

2     State services fee fund.............................             2,100    

                                                                                

3     Upper Peninsula state fair revenue..................               900    

                                                                                

4     State general fund/general purpose.................. $       1,216,600    

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

5                                     PART 2                                    

                                                                                

6                      PROVISIONS CONCERNING APPROPRIATIONS                     

                                                                                

7   GENERAL SECTIONS                                                            

                                                                                

8       Sec. 201.  Pursuant to section 30 of article IX of the state                

                                                                                

9   constitution of 1963, total state spending from state resources under       

                                                                                

10  part 1 for fiscal year 2003-2004 is $70,494,600.00 and state spending       

                                                                                

11  from state resources to be paid to local units of government for            

                                                                                

12  fiscal year 2003-2004 is $3,461,200.00.  The itemized statement below       

                                                                                

13  identifies appropriations from which spending to local units of             

                                                                                

14  government will occur:                                                      

                                                                                

15  DEPARTMENT OF AGRICULTURE                                                   

                                                                                

16    Groundwater and freshwater protection program....... $       1,800,000    

                                                                                

17    Local conservation districts........................         1,661,200    

                                                                                

18    TOTAL............................................... $       3,461,200    

                                                                                

19      Sec. 202.  The appropriations authorized under this act are                 

                                                                                

20  subject to the management and budget act, 1984 PA 431, MCL 18.1101 to       

                                                                                

21  18.1594.                                                                    

                                                                                

22      Sec. 203.  As used in this act:                                             

                                                                                

23      (a)  "DAG" means the United States department of agriculture.               

                                                                                

24      (b)  "Department" means the department of agriculture.                      

                                                                                

25      (c)  "Director" means the director of the department.                       


                                                                                

1       (d)  "EPA" means the United States environmental protection agency.         

                                                                                

2       (e)  "FTE" means full-time equated.                                         

                                                                                

3       (f)  "HHS-FDA" means the United States department of health and             

                                                                                

4   human services - food and drug administration.                              

                                                                                

5       (g)  "IDG" means interdepartmental grant.                                   

                                                                                

6       (h)  "MDCH" means the Michigan department of community health.              

                                                                                

7       (i)  "MDCIS (LCC)" means the Michigan department of consumer and            

                                                                                

8   industry services - liquor control commission.                              

                                                                                

9       (j)  "MDEQ" means the Michigan department of environmental quality.         

                                                                                

10      (k)  "MDNR" means the Michigan department of natural resources.             

                                                                                

11      Sec. 204.  The department of civil service shall bill departments           

                                                                                

12  and agencies at the end of the first fiscal quarter for the 1% charge       

                                                                                

13  authorized by section 5 of article XI of the state constitution of          

                                                                                

14  1963.  Payments shall be made for the total amount of the billing by        

                                                                                

15  the end of the second fiscal quarter.                                       

                                                                                

16      Sec. 205.  (1) A hiring freeze is imposed on the state classified           

                                                                                

17  civil service.  State departments and agencies are prohibited from          

                                                                                

18  hiring any new state classified civil service employees and prohibited      

                                                                                

19  from filling any vacant state classified civil service positions.           

                                                                                

20  This hiring freeze does not apply to internal transfers of classified       

                                                                                

21  employees from 1 position to another within a department.                   

                                                                                

22      (2) The state budget director shall grant exceptions to this                

                                                                                

23  hiring freeze when the state budget director believes the hiring            

                                                                                

24  freeze will result in rendering a state department or agency unable to      

                                                                                

25  deliver basic services, cause a loss of revenue to the state, result        

                                                                                

26  in the inability of the state to receive federal funds, or would            


                                                                                

1   necessitate additional expenditures that exceed any savings from            

                                                                                

2   maintaining a vacancy.  The state budget director shall report              

                                                                                

3   quarterly to the chairpersons of the senate and house of                    

                                                                                

4   representatives standing committees on appropriations the number of         

                                                                                

5   exceptions to the hiring freeze approved during the previous quarter        

                                                                                

6   and the reasons to justify the exception.                                   

                                                                                

7       (3) The hiring freeze does not apply to the animal industry                 

                                                                                

8   program.                                                                    

                                                                                

9       Sec. 207.  At least 60 days before beginning any effort to                  

                                                                                

10  privatize, the department shall submit a complete project plan to the       

                                                                                

11  appropriate senate and house of representatives appropriations              

                                                                                

12  subcommittees and the senate and house fiscal agencies.  The plan           

                                                                                

13  shall include the criteria under which the privatization initiative         

                                                                                

14  will be evaluated.  The evaluation shall be completed and submitted to      

                                                                                

15  the appropriate senate and house of representatives appropriations          

                                                                                

16  subcommittees and the senate and house fiscal agencies within 30            

                                                                                

17  months.                                                                     

                                                                                

18      Sec. 208.  Unless otherwise specified, the department shall use             

                                                                                

19  the Internet to fulfill the reporting requirements of this act.  This       

                                                                                

20  may include transmission of reports via electronic mail to the              

                                                                                

21  recipients identified for each reporting requirement, or it may             

                                                                                

22  include placement of reports on an Internet or Intranet site.               

                                                                                

23  Quarterly, the department shall provide to the appropriations               

                                                                                

24  subcommittees members, the fiscal agencies, and the state budget            

                                                                                

25  office an electronic and paper copy listing of the reports submitted        

                                                                                

26  during the most recent 3-month period along with the Internet or            

                                                                                

27  Intranet site of each report, if any.                                       


                                                                                

1       Sec. 209.  Funds appropriated in part 1 shall not be used for the           

                                                                                

2   purchase of foreign goods or services, or both, if competitively            

                                                                                

3   priced and of comparable quality American goods or services, or both,       

                                                                                

4   are available.                                                              

                                                                                

5       Sec. 210.  The director of each department receiving                        

                                                                                

6   appropriations in part 1 shall take all reasonable steps to ensure          

                                                                                

7   businesses in deprived and depressed communities compete for and            

                                                                                

8   perform contracts to provide services or supplies, or both.  Each           

                                                                                

9   director shall strongly encourage firms with which the department           

                                                                                

10  contracts to subcontract with certified businesses in depressed and         

                                                                                

11  deprived communities for services, supplies, or both.                       

                                                                                

12      Sec. 211.  (1) The unexpended and unobligated balance of any                

                                                                                

13  state restricted fund or account remaining at the end of the fiscal         

                                                                                

14  year shall revert back to the state restricted fund or account from         

                                                                                

15  which appropriated and be available for appropriation for the next          

                                                                                

16  fiscal year.  Appropriations that revert to a state restricted fund or      

                                                                                

17  account pursuant to this section shall not revert to the general fund       

                                                                                

18  of this state.                                                              

                                                                                

19      (2) A state restricted revenue fund or account that receives                

                                                                                

20  revenues in excess of expenditures made from that state restricted          

                                                                                

21  revenue fund or account shall not have the excess revenue revert to         

                                                                                

22  the general fund of this state.                                             

                                                                                

23      Sec. 212.  (1) Of the funds appropriated in part 1, the                     

                                                                                

24  department may provide for indemnity as provided for pursuant to the        

                                                                                

25  animal industry act of 1987, 1988 PA 466, MCL 287.701 to 287.745, not       

                                                                                

26  to exceed $100,000.00 per order from any line item for the fiscal year      

                                                                                

27  ending September 30, 2004.  Before the department provides for an           


                                                                                

1   indemnification under this section, the department shall report the         

                                                                                

2   reason for the indemnification, the amount of the indemnification, and      

                                                                                

3   to whom the indemnification is to be paid.  The report shall be given       

                                                                                

4   to each member of the house and senate appropriations subcommittees on      

                                                                                

5   agriculture and to the senate and house fiscal agencies and the state       

                                                                                

6   budget director.                                                            

                                                                                

7       (2) The department of agriculture shall make an indemnification             

                                                                                

8   payment for the fair market value of livestock that is killed by a          

                                                                                

9   wolf or coyote, if the kill is verified by the department of natural        

                                                                                

10  resources.  The fair market value of the livestock shall be determined      

                                                                                

11  pursuant to the indemnification procedures prescribed in the animal         

                                                                                

12  industry act, 1988 PA 466, MCL 287.701 to 287.745.  In addition to the      

                                                                                

13  funds appropriated in part 1, the department of agriculture is              

                                                                                

14  authorized to expend the funds received from the department of natural      

                                                                                

15  resources to reimburse the department of agriculture for all                

                                                                                

16  indemnification payments made pursuant to this subsection.                  

                                                                                

17      Sec. 213.  When the department applies to the department of                 

                                                                                

18  management and budget with a request for a transfer of appropriations       

                                                                                

19  or for a supplemental appropriation, the department shall provide the       

                                                                                

20  senate and house fiscal agencies with the same information provided to      

                                                                                

21  the department of management and budget.                                    

                                                                                

22      Sec. 214.  Of the funds appropriated in part 1 that are other               

                                                                                

23  than line-item grants, the department shall not provide grants to           

                                                                                

24  local government agencies, institutions of higher education, or             

                                                                                

25  nonprofit organizations unless the department provides notice of the        

                                                                                

26  grant to the house and senate appropriations subcommittees on               

                                                                                

27  agriculture at least 10 days before the grant is issued.  The grants        


                                                                                

1   shall be used to support research or other related activities for the       

                                                                                

2   purpose of enhancing the agricultural industries in this state.             

                                                                                

3       Sec. 216.  The unexpended and unencumbered balance of revenue               

                                                                                

4   deposited pursuant to section 20 of the horse racing law of 1995, 1995      

                                                                                

5   PA 279, MCL 431.320, for the fiscal year ending September 30, 2004,         

                                                                                

6   shall be appropriated to the Michigan agriculture equine industry           

                                                                                

7   development fund for distribution as set forth in section 20 of the         

                                                                                

8   horse racing law of 1995, 1995 PA 279, MCL 431.320.                         

                                                                                

9       Sec. 219.  From the funds appropriated in part 1 for information            

                                                                                

10  technology, the department shall pay user fees to the department of         

                                                                                

11  information technology for technology-related services and projects.        

                                                                                

12  Such user fees shall be subject to provisions of an interagency             

                                                                                

13  agreement between the department and the department of information          

                                                                                

14  technology.                                                                 

                                                                                

15      Sec. 220.  Amounts appropriated in part 1 for information                   

                                                                                

16  technology may be designated as work projects and carried forward to        

                                                                                

17  support technology projects under the direction of the department of        

                                                                                

18  information technology.  Funds designated in this manner are not            

                                                                                

19  available for expenditure until approved as work projects under             

                                                                                

20  section 451a of the management and budget act, 1984 PA 431, MCL             

                                                                                

21  18.1451a.                                                                   

                                                                                

22      Sec. 221.  At the close of the fiscal year ending September 30,             

                                                                                

23  2004, $2,025,000.00 from the unreserved and unencumbered closing            

                                                                                

24  balance of the agriculture equine industry development fund shall be        

                                                                                

25  transferred to the general fund.  This transfer shall be made as a          

                                                                                

26  result of the funding cuts applied to the various horse racing              

                                                                                

27  appropriations included in this act.                                        


                                                                                

1       Sec. 222.  The negative appropriation for employee turnover                 

                                                                                

2   savings in part 1 shall be satisfied by employee cost savings realized      

                                                                                

3   from the natural delay associated with position posting, recruitment,       

                                                                                

4   and hiring of employees to fill approved vacancies for existing             

                                                                                

5   positions within the department.  Appropriation authorization               

                                                                                

6   adjustments required to implement the negative appropriation shall be       

                                                                                

7   made after the approval of transfers by the legislature under section       

                                                                                

8   393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.          

                                                                                

                                                                                

                                                                                

9   EXECUTIVE                                                                   

                                                                                

10      Sec. 302.  The department may receive and expend revenue and use            

                                                                                

11  that revenue to cover necessary expenses related to publications,           

                                                                                

12  audit and licensing functions, livestock sales, certification of            

                                                                                

13  nursery stock, bean inspection services, and laboratory analyses as         

                                                                                

14  specified in the following:                                                 

                                                                                

15      (a) Management services publications.                                       

                                                                                

16      (b) Management services audit and licensing functions.                      

                                                                                

17      (c) Upper Peninsula state fair livestock sales.                             

                                                                                

18      (d) Pesticide and plant pest management propagation and                     

                                                                                

19  certification of virus free foundation stock.                               

                                                                                

20      (e) Pesticide and plant pest management bean inspection and                 

                                                                                

21  grading services.                                                           

                                                                                

22      (f) Laboratory support testing for testing horses in draft horse            

                                                                                

23  pulling contests at county fairs when local jurisdictions request           

                                                                                

24  state assistance.                                                           

                                                                                

25      (g) Laboratory support analyses to determine foreign substances in          

                                                                                

26  horses engaged in racing or pulling contests at tracks.                     


                                                                                

1       (h) Laboratory support analysis of food, livestock, and                     

                                                                                

2   agricultural products for disease, foreign products for disease, toxic      

                                                                                

3   materials, foreign substances, and quality standards.                       

                                                                                

4       (i) Laboratory support test samples for other agencies and                  

                                                                                

5   organizations.                                                              

                                                                                

6       (j) Fruit and vegetable inspection at shipping and termination              

                                                                                

7   points and processing plants.                                               

                                                                                

8       Sec. 303.  Of the funds appropriated in part 1 for statistical              

                                                                                

9   reporting service, $90,000.00 shall be used for surveys which include,      

                                                                                

10  but are not limited to, fruit, vegetables, and nursery stock, which         

                                                                                

11  encompasses Christmas trees and ornamental plants.  The director of         

                                                                                

12  the Michigan department of agriculture is given authority to include        

                                                                                

13  other agricultural surveys such as turfgrass in the 3- to 5-year            

                                                                                

14  rotation.  The survey shall include information such as existing            

                                                                                

15  plantings/acreage, new plantings/acreage, production, and number of         

                                                                                

16  growers.                                                                    

                                                                                

                                                                                

                                                                                

17  FOOD AND DAIRY                                                              

                                                                                

18      Sec. 401.  (1) The department shall monitor restaurant inspection           

                                                                                

19  and licensing functions carried out by local health departments to          

                                                                                

20  ensure uniform application and enforcement of minimum program               

                                                                                

21  requirements.  On or before April 1, 2004, the department shall report      

                                                                                

22  to the senate and house appropriations subcommittees on agriculture,        

                                                                                

23  the senate and house fiscal agencies, and the state budget director on      

                                                                                

24  local health department conformance with minimum program                    

                                                                                

25  requirements.                                                               

                                                                                

26      (2) If a local unit of government incurs additional costs                   

                                                                                

27  resulting from its efforts to control a significant food-borne              


                                                                                

1   outbreak, the director shall seek additional resources to reimburse         

                                                                                

2   the local unit of government for these additional costs.  The director      

                                                                                

3   shall involve the local health officer of the jurisdiction affected in      

                                                                                

4   all aspects of the control of any food-borne outbreak.                      

                                                                                

5       Sec. 402.  Not later than April 1, 2004, the department shall               

                                                                                

6   provide a report to the house and senate appropriations subcommittees       

                                                                                

7   on agriculture and the house and senate fiscal agencies describing          

                                                                                

8   significant food-borne outbreaks and emergencies including any              

                                                                                

9   enforcement actions taken related to food safety during the 2002-2003       

                                                                                

10  fiscal year.                                                                

                                                                                

11      Sec. 403.  The department, in conjunction with the department of            

                                                                                

12  community health, shall assure that a process is in place that              

                                                                                

13  requires a local unit of government to obtain prior approval from the       

                                                                                

14  department before any reallocation or redistribution of program funds       

                                                                                

15  appropriated in section 104.                                                

                                                                                

                                                                                

                                                                                

16  ANIMAL INDUSTRY                                                             

                                                                                

17      Sec. 450.  From the funds appropriated in section 105 for the               

                                                                                

18  bovine tuberculosis program, the department of agriculture shall            

                                                                                

19  reimburse the department of natural resources for those costs               

                                                                                

20  associated with monitoring and testing wildlife for bovine                  

                                                                                

21  tuberculosis that are necessary to support the department of                

                                                                                

22  agriculture goals and are jointly agreed to by the department of            

                                                                                

23  agriculture and the department of natural resources to be in excess of      

                                                                                

24  efforts necessary to effectively plan and execute the eradication of        

                                                                                

25  bovine tuberculosis from Michigan's wild free-ranging deer herd.            

                                                                                

26      Sec. 451.  From the funds appropriated in section 101 for bovine            

                                                                                

27  tuberculosis, the department shall pay for all whole herd testing           


                                                                                

1   costs to achieve and maintain split-state status requirements.  These       

                                                                                

2   costs include producer assistance, indemnity, and compensation for          

                                                                                

3   injury causing death or downer to animals.                                  

                                                                                

4       Sec. 452.  In the event of a significant animal or plant health             

                                                                                

5   outbreak, the director shall seek additional state and/or federal           

                                                                                

6   resources to cover the additional costs associated with addressing the      

                                                                                

7   outbreak.                                                                   

                                                                                

                                                                                

                                                                                

8   PESTICIDE AND PLANT PEST MANAGEMENT                                         

                                                                                

9       Sec. 501.  Of the funds appropriated in section 106 to the                  

                                                                                

10  pesticide and plant pest management division, up to $100,000.00 may be      

                                                                                

11  made available to the Michigan cooperative extension service for the        

                                                                                

12  purpose of training of applicators.  Reimbursement shall be based on        

                                                                                

13  actual expenditures and revenue availability.                               

                                                                                

                                                                                

                                                                                

14  ENVIRONMENTAL STEWARDSHIP                                                   

                                                                                

15      Sec. 601.  The funds appropriated in section 107 for the energy             

                                                                                

16  conservation program shall be distributed on a competitive basis that       

                                                                                

17  will be based on statewide energy conservation criteria.                    

                                                                                

18      Sec. 602.  The department may expend the amount appropriated for            

                                                                                

19  migrant labor housing grants for construction of new migrant labor          

                                                                                

20  housing.  Project grants shall not exceed $5,000.00 per unit.  An           

                                                                                

21  applicant is not eligible for more than a $20,000.00 grant in any           

                                                                                

22  fiscal year.                                                                

                                                                                

23      Sec. 603.  The department shall apply for all federal funds for             

                                                                                

24  which it is eligible that can be used to support the migrant labor          

                                                                                

25  housing program.                                                            

                                                                                

26      Sec. 604.  The appropriation in section 107 for local                       


                                                                                

1   conservation districts shall be allocated in the following manner:          

                                                                                

2       (a) Of the total appropriation, $81,200.00 shall be allocated for           

                                                                                

3   local conservation district training.                                       

                                                                                

4       (b) Of the total appropriation, each local conservation district            

                                                                                

5   meeting the minimum grant requirements shall receive a grant of             

                                                                                

6   $20,000.00 to support basic operations, unless the district resides in      

                                                                                

7   a county consisting of multiple districts, in which case a $20,000.00       

                                                                                

8   grant shall be divided equally among the districts in that county.          

                                                                                

9   The amount of money allocated under this subdivision shall not be used      

                                                                                

10  by local conservation districts to replace any money received from          

                                                                                

11  local sources.                                                              

                                                                                

12      (c) Of the remaining appropriation after distributions under                

                                                                                

13  subdivisions (a) and (b), additional grants, not to exceed $20,000.00       

                                                                                

14  per local conservation district, may be provided based on a formula         

                                                                                

15  approved by the commission of agriculture.  Grants under this               

                                                                                

16  subdivision shall require at least a 100% cash or in-kind local             

                                                                                

17  match.  Criteria used to distribute grants under this subdivision           

                                                                                

18  shall include, but are not limited to, the natural resources need, the      

                                                                                

19  size, and the population of the area served by each local conservation      

                                                                                

20  district.                                                                   

                                                                                

                                                                                

                                                                                

21  MARKET DEVELOPMENT                                                          

                                                                                

22      Sec. 701.  Within the appropriations in part 1 for market                   

                                                                                

23  development, $500,000.00 is for the grape and wine industry council,        

                                                                                

24  from which the department may provide grants for the purposes as            

                                                                                

25  described in section 303 of the Michigan liquor control code of 1998,       

                                                                                

26  1998 PA 58, MCL 436.1303.                                                   


                                                                                

1       Sec. 702.  In any given year when insufficient amounts of                   

                                                                                

2   Michigan surplus products are offered to the food bank council and          

                                                                                

3   accepted for distribution, unused funds may be applied by the food          

                                                                                

4   bank council for the direct purchase of foods from Michigan growers,        

                                                                                

5   manufacturers, or wholesalers.                                              

                                                                                

6       Sec. 704.  Indirect costs may not be charged against the future             

                                                                                

7   farmers of America grant in section 109 by any administering agency.        

                                                                                

8       Sec. 705.  The appropriation in section 109 for the export market           

                                                                                

9   development program shall be used to coordinate state participation in      

                                                                                

10  the federal market access program and to leverage federal funds for         

                                                                                

11  the purpose of developing new and enhancing existing export markets         

                                                                                

12  for Michigan agricultural products.                                         

                                                                                

13      Sec. 707.  The department is authorized to receive and expend up            

                                                                                

14  to $5,000,000.00 of utility company uncollectible allowance recovery        

                                                                                

15  fund resources which may be deposited into the agricultural                 

                                                                                

16  development fund for the support of grants for value-added                  

                                                                                

17  agricultural processing and agricultural production ventures in             

                                                                                

18  accordance with the Julian-Stille value-added act, 2000 PA 322, MCL         

                                                                                

19  285.301 to 285.304.  The agriculture development fund resources when        

                                                                                

20  certified as available by the department of treasury shall remain           

                                                                                

21  unallotted until such time as the state budget director has reviewed        

                                                                                

22  and approved a department submitted allotment schedule.  Expenditures       

                                                                                

23  for support of agricultural processing and production ventures shall        

                                                                                

24  not exceed revenues received.  Unexpended resources remaining in the        

                                                                                

25  fund at the end of the fiscal year shall remain in the fund and not         

                                                                                

26  lapse to the general fund.                                                  

                                                                                

                                                                                


                                                                                

1   FAIRS AND EXPOSITIONS                                                       

                                                                                

2       Sec. 801.  The department shall submit a report each month to the           

                                                                                

3   state budget director, the senate and house appropriations                  

                                                                                

4   subcommittees on agriculture, and the senate and house fiscal agencies      

                                                                                

5   that states the simulcasting revenues generated in the preceding month      

                                                                                

6   by each licensed track and the amount received from license fees.           

                                                                                

7       Sec. 802.  (1) The appropriation in section 110 for standardbred            

                                                                                

8   purses and supplements - licensed tracks is intended to provide state       

                                                                                

9   purse supplements for 4 races at state licensed pari-mutuel horse           

                                                                                

10  racing tracks.  The purse supplements are to be used for races              

                                                                                

11  comprised only of Michigan-bred horses segregated into a 4-year-old         

                                                                                

12  colt trot division, a 4-year-old filly trot division, a 4-year-old          

                                                                                

13  colt pace division, and a 4-year-old filly pace division.                   

                                                                                

14      (2) The appropriation in part 1 for licensed tracks - light horse           

                                                                                

15  racing shall be allocated as follows:                                       

                                                                                

16    Arabian and Appaloosa horse racing.................. $          16,800    

                                                                                

17    Quarter horse racing................................            50,500    

                                                                                

18      Sec. 803.  Included in the appropriation made in section 110 for            

                                                                                

19  the thoroughbred program is $30,500.00 for the Michigan united              

                                                                                

20  thoroughbred breeders and owners association to conduct a thoroughbred      

                                                                                

21  yearling show.  The Michigan united thoroughbred breeders and owners        

                                                                                

22  association shall submit to the department an itemized list of              

                                                                                

23  expenses showing that the expenses of the yearling show were paid.          

                                                                                

24      Sec. 804.  From the funds appropriated in section 110 for                   

                                                                                

25  thoroughbred owners' awards, awards shall be distributed pursuant to        

                                                                                

26  section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.       

                                                                                

27      Sec. 805.  The department shall notify the senate and house                 


                                                                                

1   appropriations subcommittees and the fiscal agencies of any planned         

                                                                                

2   reductions in appropriations, allocations, or expenditures from the         

                                                                                

3   agriculture equine industry development fund no less than 10 days           

                                                                                

4   before such reductions are implemented.                                     

                                                                                

5       Sec. 806.  A county fair, district fair, 4-H fair, or state fair            

                                                                                

6   receiving funds in section 110 to be used for prizes or awards, in          

                                                                                

7   whole or in part, as a condition precedent to the receiving of the          

                                                                                

8   funds for those purposes, shall publish the rules relative to the           

                                                                                

9   prizes, awards, and deadlines for entries eligible for the funds in         

                                                                                

10  their official premium books or lists relative to the prizes or             

                                                                                

11  awards.  An aggrieved exhibitor may make a written complaint to the         

                                                                                

12  fair within 10 days after the fair ends.  If the fair has not               

                                                                                

13  satisfactorily settled the grievance within 45 days after it is             

                                                                                

14  submitted to the fair, the aggrieved person may file the complaint          

                                                                                

15  with the department and the department shall investigate the complaint      

                                                                                

16  and make a finding of fact regarding the complaint and take                 

                                                                                

17  appropriate action regarding the complaint.                                 

                                                                                

18      Sec. 807.  Of the amount appropriated in section 110 for purses             

                                                                                

19  and supplements - fairs/licensed tracks, a sufficient amount is             

                                                                                

20  appropriated to provide for overnight purse supplements pursuant to         

                                                                                

21  the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336.          

                                                                                

22      Sec. 808.  Of the amount appropriated in section 110 for                    

                                                                                

23  premiums, $11,400.00 shall be expended as a grant for the Michigan          

                                                                                

24  horse show association - fall youth show.                                   

                                                                                

25      Sec. 809.  From the appropriations for premiums - county and                

                                                                                

26  state fairs in section 110, $120,000.00 shall be awarded through a          

                                                                                

27  competitive grant program to local, regional, or state fairs or             


                                                                                

1   expositions to promote youth involvement and adult exhibitions in the       

                                                                                

2   animal agriculture industry.  Appropriate exhibition classes for youth      

                                                                                

3   shall be developed that encourage a production exhibit for which            

                                                                                

4   premium awards may be paid.  The age for youth exhibitors shall be          

                                                                                

5   determined by the standards of the association requesting the grant         

                                                                                

6   or, if standards do not exist, the age for youth exhibitors shall be        

                                                                                

7   ages 9 through 21.  Implementation of the latest technologies into the      

                                                                                

8   evaluation of the animals shall be encouraged in the production             

                                                                                

9   exhibit.  Adult exhibitions should focus on the performance or end          

                                                                                

10  product, or both, with the appropriate technologies used to enhance         

                                                                                

11  placings and the awarding of premiums.                                      

                                                                                

12      Sec. 811.  The funds appropriated in section 110 for distribution           

                                                                                

13  of outstanding winning tickets are not available for expenditure until      

                                                                                

14  they are deposited in the agriculture equine industry development fund      

                                                                                

15  pursuant to section 2 of 1951 PA 90, MCL 431.252.  These funds shall        

                                                                                

16  be expended in accordance with section 2 of 1951 PA 90, MCL 431.252,        

                                                                                

17  and only after they have been transferred to another line item in this      

                                                                                

18  act under section 393(2) of the management and budget act, 1984 PA          

                                                                                

19  431, MCL 18.1393.                                                           

                                                                                

20      Sec. 812.  An individual or other entity that leases land, a                

                                                                                

21  building, or other property under the Michigan exposition and               

                                                                                

22  fairgrounds act, 1978 PA 361, MCL 285.161 to 285.175a, is not eligible      

                                                                                

23  for a state grant, loan, appropriation, or other state subsidy related      

                                                                                

24  to the leased land, building, or other property.                            

                                                                                

25      Sec. 813.  (1) On or before January 29, 2004, the department,               

                                                                                

26  together with the senate and house fiscal agencies and the department       

                                                                                

27  of management and budget, shall estimate the unreserved and                 


                                                                                

1   unencumbered closing balance of the agriculture equine industry             

                                                                                

2   development fund for the fiscal year ending September 30, 2003.  The        

                                                                                

3   estimate shall consider lapsed appropriations from the fund and any         

                                                                                

4   carryforward amounts designated for appropriation in the fiscal year        

                                                                                

5   ending September 30, 2003.                                                  

                                                                                

6       (2) On or before February 5, 2004, the department shall request a           

                                                                                

7   legislative transfer in accordance with section 393 of the management       

                                                                                

8   and budget act, 1984 PA 431, MCL 18.1393, to appropriate any estimated      

                                                                                

9   unreserved and unencumbered agriculture equine industry development         

                                                                                

10  fund balance in excess of $250,000.00.  The appropriations included in      

                                                                                

11  the transfer request shall be in accordance with the requirements of        

                                                                                

12  section 20 of the horse racing law of 1995, 1995 PA 279, MCL 431.320.       

                                                                                

13  At the same time the department forwards its transfer request to the        

                                                                                

14  department of management and budget, the department shall submit            

                                                                                

15  copies of the transfer request to the senate and house appropriations       

                                                                                

16  subcommittees on agriculture and the senate and house fiscal                

                                                                                

17  agencies.                                                                   

                                                                                

                                                                                

                                                                                

18  OFFICE OF RACING COMMISSIONER                                               

                                                                                

19      Sec. 901.  The racing commissioner may pay rewards of not more              

                                                                                

20  than $5,800.00 to a person who provides information that results in         

                                                                                

21  the arrest and conviction on a felony or misdemeanor charge for a           

                                                                                

22  crime that involves the horse racing industry.  A reward paid pursuant      

                                                                                

23  to this section shall be paid out of the office of racing commissioner      

                                                                                

24  line item.